Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review ST VINCENT AND THE GRENADINES

in 2018, with marked increases in the export of conch, lobster, tuna and snapper.

gas. Partially alleviating those pressures, were declines in the Food & non-alcoholic beverages (0.03 per cent) and Clothing & footwear (0.2 percent) sub-indices. Lower prices for selected vegetables and condiments contributed to the downward pressure in the average price level of the food and non- alcoholic beverages sub-index, while a decline in the price of textile materials contributed to the fall in the average price level of the clothing & footwear sub-index. Labour market conditions improved in 2018, as indicated by proxy data from the National Insurance Services (NIS). Preliminary data revealed that the total insured population rose by 4.2 per cent in 2018, albeit a slower pace than the 9.2 per cent increase in the preceding year. The largest increase was in the self- employed category which grew by 10.9 per cent in 2018, which was followed by the employee sub-group at 4.0 per cent. Conversely, voluntary contributors contracted by 1.0 per cent. Among the economic sectors tracked by the NIS from the employee sub- group, advances were registered in all categories with the exception of mining and quarrying.

Prices, Wages and Employment

Inflationary pressures moderated in 2018 relative to 2017, as measured by the annual change in the Consumer Price Index (CPI) on an end-of-period basis . The index rose by 1.4 per cent in 2018, following a 3.0 per cent increase in 2017. The largest advances in the index in 2018 were registered in Alcoholic Beverages, Tobacco & Narcotics (3.5 per cent), Transport (3.3 per cent), Housing, Electricity, Gas & Oher Fuels (2.3 per cent) sub-indices. The Alcoholic Beverages, Tobacco and Narcotics sub-index was 3.5 per cent higher, reflecting higher prices for wines, spirits and local beer. Meanwhile, higher oil prices partially contributed to the increase in the Transport; and Housing, Electricity, Gas & Other Fuels sub-indices. The increase in the Transport index was due to upward movements in the prices of diesel and petrol as well as higher airfares to selected regional destinations. Meanwhile the rise in the price of the Housing, Electricity, Gas & Other Fuels sub- index was partly influenced by higher prices for building materials, electricity and cooking

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